UK adults eye crypto for retirement savings

More UK adults are considering adding cryptocurrency to their retirement plans, with over a quarter willing to invest their pension money in digital assets.

A survey by UK insurance company Aviva, done by Censuswide from June 4 to 6, found that 27% of 2,000 adults want to include digital assets in their retirement plans.

Brits weigh crypto gains against pension safety

More UK adults are now interested in adding cryptocurrency to their retirement planning because it can attract higher returns than traditional pension investments. The Aviva survey shows that about 43% of respondents are motivated by the possibility of growing their retirement savings faster, while 36% are interested in the technology. 

The report also indicates that about 32% of respondents want to spread their money across different assets to reduce risks and gain exposure to growing markets that could perform well over time.

However, there are still concerns about financial security and the possible drawbacks of withdrawing pension funds. More than 6 in 10 respondents (62%) worry about losing their pension benefits if they move money to digital assets. This proves that many people still trust the stability and reliability of traditional retirement savings. Pensions come with a sense of financial safety that digital assets cannot guarantee, like employer contributions, government tax relief, and predictable growth over decades.

The survey also highlighted that nearly one-third of respondents don’t fully understand the benefits they may be giving up by cashing in their pensions. These advantages include decades of compounded growth, employer contributions, and tax advantages. 

On the other hand, 27% said they were unaware of the risks that come with cryptocurrency investments. These risks include sudden and extreme price swings, exposure to hacking or phishing attacks, and a lack of formal regulation or consumer protection.  

UK investors face few crypto pension options

The UK retirement market has over four in five adults holding pension accounts worth an estimated £3.8 trillion ($5.12 trillion). However, despite this large market size, investors wanting to add digital assets to their retirement plan have limited regulated options. 

Most traditional pension plans in the UK do not allow people to hold digital assets directly. Adults must withdraw funds from their pensions and invest independently through cryptocurrency exchanges or other platforms.

This gap between the interests of investors and the available products forces many people to choose between innovation and financial security. What’s worse is that those without sufficient information will make regretful decisions with dire consequences on their finances. 

In contrast, the United States is moving to counter such limitations in the UK. The country recently allowed 401(k) plans to include Bitcoin and other digital currencies. With crypto in their retirement accounts, Americans can access more than $9 trillion in retirement assets to diversify into digital assets. 

Survey data also shows the generational gap in crypto engagement and pension behavior. About 21% of UK adults have previously invested in crypto. Young adults aged 25 – 34 say they have already withdrawn their pension funds to invest in digital assets. This demonstrates that younger investors are more willing to take higher risks, but it also exposes them to complications that a limited regulatory structure causes. 

Security and regulatory concerns are another big issue hindering interest in digital assets pensions. The survey indicates that about 41% stressed risks such as hacking and phishing attacks, while 37% said that the lack of formal regulation and consumer protection made them hesitant. On top of that, 30% pointed to the extreme volatility of digital assets as a concern. 

These challenges have caused UK banks to slow their support for crypto transactions. 40% of surveyed crypto investors even reported their banks blocked or delayed crypto payments to providers. 

The UK government announced plans for stricter reporting requirements for crypto transactions starting January 1, 2026, to address some of these problems. It wants to improve oversight, tax compliance, and consumer protection in the crypto space to encourage adoption by traditional financial institutions. 

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